Can celebrities influence the Bitcoin price?
Last week, an article published by Cointelegraph claimed that John Cena’s instagram post might have been the reason for another bitcoin spike. The author explains that the famous wrestler had posted a picture of Bitcoin coins without any explanation — just like all posts in his Instagram — just a few hours before the price of Bitcoin went up radically. Was it more than a coincidence?
Since the price of Bitcoin is speculative, it is influenced by many different factors. Experienced traders know to monitor all world news connected with the cryptocurrency market and blockchain solutions, as the news agenda might indicate the upcoming price changes. In the traditional finance market, trading according to insider information is strictly prohibited, and this has a reason.
However, the cryptocurrency market is growing with an outstanding pace. It is not a ‘just for geeks’ thing any more. Logically, more and more factors are are being added to the list of things that may have an impact on the people’s decisions and, consequently, the prices of coins.
Elena Obukhova, Papyrus Communications Director, comments: “It is widely known that opinion leaders may factor into very different spheres. For example, a cinema star may easily create a housing or travel trend, or make an IT product popular. In this way it is not unlikely that John Cena’s instagram may have affected the price of Bitcoin. However, the Instagram has only 7 thousand followers, which would not be enough for such a hype. Most probably, this post was just one of the many factors that led to the spike that day. In any case, I am glad that blockchain and cryptocurrencies are becoming so popular, and I think that the industry will take advantage of celebrity marketing very soon”.